Assume that investors hold Alphabet Inc (GOOGL) stock in retirement accounts that are free from personal taxes.

Assume that investors hold Alphabet Inc (GOOGL) stock in retirement accounts that are free from personal taxes. Also assume that GOOGL's current pre-tax WACC is 14% and its corporate tax rate is 35%. If GOOGL were to issue sufficient debt at a pre-tax cost of 7% to give them a debt to value ratio of 0.5, then the Google's after-tax WACC would be closest to:

10.4%

12.8%

15.0%

16.0%